LINAMAR CORP (LNR.CA) Stock Fundamental Analysis
TSX:LNR - Toronto Stock Exchange - CA53278L1076 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to LNR. LNR was compared to 5 industry peers in the Automobile Components industry. Both the profitability and the financial health of LNR get a neutral evaluation. Nothing too spectacular is happening here. LNR is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
LNR had positive earnings in the past year.
LNR had a positive operating cash flow in the past year.
In the past 5 years LNR has always been profitable.
LNR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LNR has a worse Return On Assets (2.41%) than 60.00% of its industry peers.
Looking at the Return On Equity, with a value of 4.56%, LNR is doing worse than 60.00% of the companies in the same industry.
LNR has a Return On Invested Capital of 7.51%. This is in the better half of the industry: LNR outperforms 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LNR is in line with the industry average of 7.01%.
The last Return On Invested Capital (7.51%) for LNR is above the 3 year average (6.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 4.56% | ||
| ROIC | 7.51% |
ROA(3y)4.18%
ROA(5y)4.38%
ROE(3y)7.69%
ROE(5y)7.72%
ROIC(3y)6.55%
ROIC(5y)6.26%
1.3 Margins
With a Profit Margin value of 2.48%, LNR is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of LNR has declined.
LNR has a Operating Margin of 9.03%. This is in the better half of the industry: LNR outperforms 80.00% of its industry peers.
In the last couple of years the Operating Margin of LNR has remained more or less at the same level.
The Gross Margin of LNR (14.56%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of LNR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.03% | ||
| PM (TTM) | 2.48% | ||
| GM | 14.56% |
OM growth 3Y-0.8%
OM growth 5Y0%
PM growth 3Y-27.61%
PM growth 5Y-15.91%
GM growth 3Y-0.31%
GM growth 5Y-0.22%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LNR is destroying value.
Compared to 1 year ago, LNR has less shares outstanding
LNR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LNR is higher compared to a year ago.
2.2 Solvency
LNR has an Altman-Z score of 2.64. This is not the best score and indicates that LNR is in the grey zone with still only limited risk for bankruptcy at the moment.
LNR's Altman-Z score of 2.64 is in line compared to the rest of the industry. LNR outperforms 60.00% of its industry peers.
The Debt to FCF ratio of LNR is 2.73, which is a good value as it means it would take LNR, 2.73 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LNR (2.73) is better than 80.00% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that LNR is not too dependend on debt financing.
LNR has a Debt to Equity ratio of 0.34. This is comparable to the rest of the industry: LNR outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.73 | ||
| Altman-Z | 2.64 |
ROIC/WACC0.91
WACC8.26%
2.3 Liquidity
A Current Ratio of 1.69 indicates that LNR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.69, LNR is in line with its industry, outperforming 60.00% of the companies in the same industry.
A Quick Ratio of 0.94 indicates that LNR may have some problems paying its short term obligations.
LNR's Quick ratio of 0.94 is in line compared to the rest of the industry. LNR outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.39% over the past year.
Measured over the past 5 years, LNR shows a small growth in Earnings Per Share. The EPS has been growing by 6.61% on average per year.
LNR shows a small growth in Revenue. In the last year, the Revenue has grown by 2.26%.
Measured over the past years, LNR shows a small growth in Revenue. The Revenue has been growing by 7.37% on average per year.
EPS 1Y (TTM)6.39%
EPS 3Y14.51%
EPS 5Y6.61%
EPS Q2Q%6.56%
Revenue 1Y (TTM)2.26%
Revenue growth 3Y17.42%
Revenue growth 5Y7.37%
Sales Q2Q%-6.97%
3.2 Future
Based on estimates for the next years, LNR will show a small growth in Earnings Per Share. The EPS will grow by 6.37% on average per year.
Based on estimates for the next years, LNR will show a decrease in Revenue. The Revenue will decrease by -0.21% on average per year.
EPS Next Y-2.06%
EPS Next 2Y6.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.44%
Revenue Next 2Y-0.21%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.49, the valuation of LNR can be described as very cheap.
LNR's Price/Earnings ratio is rather cheap when compared to the industry. LNR is cheaper than 100.00% of the companies in the same industry.
LNR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
Based on the Price/Forward Earnings ratio of 5.83, the valuation of LNR can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LNR is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.70. LNR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.49 | ||
| Fwd PE | 5.83 |
4.2 Price Multiples
80.00% of the companies in the same industry are more expensive than LNR, based on the Enterprise Value to EBITDA ratio.
LNR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LNR is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.8 | ||
| EV/EBITDA | 3.31 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.98
EPS Next 2Y6.37%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LNR has a Yearly Dividend Yield of 1.81%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.75, LNR is paying slightly less dividend.
LNR's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
On average, the dividend of LNR grows each year by 15.99%, which is quite nice.
LNR has been paying a dividend for at least 10 years, so it has a reliable track record.
LNR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)15.99%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
23.91% of the earnings are spent on dividend by LNR. This is a low number and sustainable payout ratio.
LNR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP23.91%
EPS Next 2Y6.37%
EPS Next 3YN/A
TSX:LNR (6/30/2025, 7:00:00 PM)
64.8
+1.04 (+1.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners19.03%
Inst Owner ChangeN/A
Ins Owners35.49%
Ins Owner ChangeN/A
Market Cap3.88B
Analysts76
Price Target66.47 (2.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly Dividend1
Dividend Growth(5Y)15.99%
DP23.91%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.33%
Min EPS beat(2)12.18%
Max EPS beat(2)14.48%
EPS beat(4)3
Avg EPS beat(4)7.01%
Min EPS beat(4)-0.57%
Max EPS beat(4)14.48%
EPS beat(8)7
Avg EPS beat(8)10.41%
EPS beat(12)10
Avg EPS beat(12)9.93%
EPS beat(16)13
Avg EPS beat(16)11.02%
Revenue beat(2)0
Avg Revenue beat(2)-2.04%
Min Revenue beat(2)-2.65%
Max Revenue beat(2)-1.42%
Revenue beat(4)0
Avg Revenue beat(4)-2.44%
Min Revenue beat(4)-4.21%
Max Revenue beat(4)-1.42%
Revenue beat(8)4
Avg Revenue beat(8)0.52%
Revenue beat(12)8
Avg Revenue beat(12)2.13%
Revenue beat(16)10
Avg Revenue beat(16)1.71%
PT rev (1m)2.36%
PT rev (3m)-10.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.89%
EPS NY rev (1m)0%
EPS NY rev (3m)7.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.49 | ||
| Fwd PE | 5.83 | ||
| P/S | 0.37 | ||
| P/FCF | 4.8 | ||
| P/OCF | 3.06 | ||
| P/B | 0.69 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 3.31 |
EPS(TTM)9.99
EY15.42%
EPS(NY)11.11
Fwd EY17.15%
FCF(TTM)13.49
FCFY20.81%
OCF(TTM)21.2
OCFY32.72%
SpS173.75
BVpS94.41
TBVpS61.55
PEG (NY)N/A
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 4.56% | ||
| ROCE | 11.94% | ||
| ROIC | 7.51% | ||
| ROICexc | 8.49% | ||
| ROICexgc | 11.83% | ||
| OM | 9.03% | ||
| PM (TTM) | 2.48% | ||
| GM | 14.56% | ||
| FCFM | 7.76% |
ROA(3y)4.18%
ROA(5y)4.38%
ROE(3y)7.69%
ROE(5y)7.72%
ROIC(3y)6.55%
ROIC(5y)6.26%
ROICexc(3y)7.42%
ROICexc(5y)7.24%
ROICexgc(3y)10.64%
ROICexgc(5y)10.8%
ROCE(3y)10.42%
ROCE(5y)9.96%
ROICexcg growth 3Y-1.07%
ROICexcg growth 5Y3.47%
ROICexc growth 3Y2.32%
ROICexc growth 5Y3.81%
OM growth 3Y-0.8%
OM growth 5Y0%
PM growth 3Y-27.61%
PM growth 5Y-15.91%
GM growth 3Y-0.31%
GM growth 5Y-0.22%
F-Score7
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.73 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 74.42% | ||
| Cap/Sales | 4.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.35% | ||
| Profit Quality | 313.35% | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 2.64 |
F-Score7
WACC8.26%
ROIC/WACC0.91
Cap/Depr(3y)116.63%
Cap/Depr(5y)94.15%
Cap/Sales(3y)6.26%
Cap/Sales(5y)5.54%
Profit Quality(3y)92.83%
Profit Quality(5y)168.68%
High Growth Momentum
Growth
EPS 1Y (TTM)6.39%
EPS 3Y14.51%
EPS 5Y6.61%
EPS Q2Q%6.56%
EPS Next Y-2.06%
EPS Next 2Y6.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.26%
Revenue growth 3Y17.42%
Revenue growth 5Y7.37%
Sales Q2Q%-6.97%
Revenue Next Year-3.44%
Revenue Next 2Y-0.21%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y8.29%
EBIT growth 3Y16.48%
EBIT growth 5Y7.37%
EBIT Next Year63.98%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y828.35%
FCF growth 3Y1.81%
FCF growth 5Y2.55%
OCF growth 1Y115.93%
OCF growth 3Y11.33%
OCF growth 5Y1.44%